JIT Systems and External Logistics Suppliers

Author:

Spencer Michael S.,Rogers Dale S.,Daugherty Patricia J.

Abstract

Just‐in‐time (JIT) systems have evolved from a few selected implementations in the automobile industry into a widespread business practice. Early understanding of JIT models indicated that JIT can reduce inventory in the production system through the elimination of wasteful activities. This understanding led some researchers to suggest that JIT warehousing or JIT logistics are contradictions in terms since JIT′s purpose is to eliminate warehousing by delivering components just as they are needed. However, more recent studies of JIT practices indicate that an opportunity exists to use JIT benefits. Discusses the benefits of outsourcing logistics functions to external suppliers in order to enhance JIT performance. Additionally, a survey of services provided by JIT logistics suppliers is presented as well as criteria for selecting the “best” logistics supplier.

Publisher

Emerald

Subject

Management of Technology and Innovation,Strategy and Management,General Decision Sciences

Reference26 articles.

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2. 2. Crawford, K.M., Blackstone, J.H. and Cox, J.F., “A Study of JIT Implementation and Operating Problems”, International Journal of Production Research, Vol. 26 No. 9, 1988, pp. 1561‐8.

3. 3. Im, J.H. and Lee, S.M., “Implementation of Just‐in‐Time Systems in US Manufacturing Firms”, International Journal of Operations & Production Management, Vol. 9 No. 1, 1989, pp. 5‐13.

4. 4. Rice, J.W., and Yoshikawa, T., “A Comparison of Kanban and MRP Concepts for the Control of Repetitive Manufacturing Systems”, Production and Inventory Management, First Quarter, 1982, p. 1.

5. 5. Bagchi, P.K., “Management of Materials Under Just‐in‐time Inventory System: A New Look”, Journal of Business Logistics, Vol. 9 No. 2, 1988 p. 89‐101.

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